HANDBOOK OF HRM IN THE MIDDLE EAST

EDITED BY PAWAN BUDHWAR AND KAMEL MELLAHI

Chapter:

Wasta in the Jordanian Context

Authorship

1- Mohammad Ta’Amnha

German-Jordanian University- Jordan

2- Susan Sayce

NBS, University of East Anglia- UK

3- Olga Tregaskis

NBS, University of East Anglia- UK

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Chapter:

Wasta in the Jordanian Context

Authorship

4- Mohammad Ta’Amnha

German-Jordanian University- Jordan

5- Susan Sayce

NBS, University of East Anglia- UK

6- Olga Tregaskis

NBS, University of East Anglia- UK

Wasta is a powerful and pervasive social mechanism underpinning the employment relationship in Arabic

societies. It is a specific form of social capital that influences several aspects of people’s lives and the

way in which business is conducted (Sabri, 2011). Therefore, “[o]ne of the greatest challenges to

managers and researchers in the Arab world has been in understanding the social networks or "wasta"

that pervade business activities” (Iles et al., 2012, p.4). Nevertheless, there is a huge gap in the literature

on several aspects of Wasta, including its meanings, influences, downsides and usage, and how it is

perceived by people and organizations (Barnett et al., 2011, Loewe et al., 2008). The relational dynamic

connecting individual, work environments and societal norms makes Wasta a mechanism of particular

relevance to the study of Human Resource Management issues, and one that has been recognised as

lacking attention (Aladwan et al., 2014, Budhwar and Mellahi, 2007, Altarawneh and Aldehayyat, 2011).

The significance of Wasta has arguable taken on new meaning arising from the current

transitions taking place in the Arab region that offer an unprecedented “quasi-experimental

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setting” in which to examine theories and frameworks (Zahra, 2011, p.2). For instance, Sidani

and Showail (2013) claimed that the current Arab Spring revolutions have revealed that the

young generation is less attached to many traditional values, and they have therefore developed

new understandings and perceptions of their lives. In contrast, twenty-five years ago Faisal

(1990) found that 79.4% of respondents in an Arabic context indicated that both old and young

people used Wasta; and just prior to the rise of political tensions in Jordan, the Arab Archives

Institute (2000) found that 78% of the Jordanian people believed that Wasta would remain strong

in Jordanian society and that the need for its intervention was increasing.

This chapter is devoted to beginning to address the void in our understanding of the meaning and

impact of Wasta in contemporary Jordanian society. This chapter will draw on available

literature and empirical research to clarify the realities of Wasta as experienced by those working

in a Jordanian context, and to identify the cultural and institutional factors shaping the meaning

of Wasta and its impact.

Jordan at a Glance

Jordan was established in 1921 under the name of the Emirate of Trans-Jordan during the British

mandate, which ended in 1946. In 1950 the state was renamed The Hashemite Kingdom of

Jordan and the special defence treaty with the United Kingdom was rescinded in 1957. Arabic is

the official language of Jordan, but people speak it in different dialects (e.g. north, south, city,

village, etc.); in addition, English is widely spoken, especially amongst the educated working in

the Jordanian government, and private business.

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Jordan is a small country of about 81,328 square kilometres, located in an unstable area in the

Middle East. It borders Syria to the north, Israel, the Dead Sea, and the West Bank to the west,

Saudi Arabia to the south, and Iraq to the east. Jordan is a lower-middle income country with a

population of around 6,388,000, eighty per cent of whom are located in urban areas. It is a young

society, with more than a third of its population under the age of 15 and about 60 per cent

between 15 and 64 years of age (Department of Statistics, 2012). Ninety-two per cent of the

Jordanian population are Sunni Muslims while about 2 per cent are Shia Muslims and Druze, and

6 per cent are Christians.

Over the last two decades, Jordan has experienced visible improvements in several areas,

including healthcare, literacy, democracy, politics, the economy and human resources, However,

Jordan is still facing many challenges such as high rates of unemployment, lack of natural

resources, political instability in the region, inconsistency in financial aid, and huge numbers of

refugees particularly from Palestine, Iraq and, recently, from Syria, which puts more pressure on

the infrastructure, the limited resources and job opportunities.

Introduction and Theoretical Background

Social capital is a popular concept in the social sciences, resulting from its significant impact on

social actors and their societies at macro and micro levels (Lin, 2001). Analysis at the macro

level has examined the effect of social capital on wellbeing, public health, democracy, politics,

economies, innovation adoption and diffusion, and development of markets (Weaver and

Habibov, 2012, Putnam, 2000, Sampson et al., 2002, De Silva et al., 2005, Szreter and

Woolcock, 2004, Aarikka-Stenroos et al., 2014). At the micro level, evidence has demonstrated

the impact of social capital on the development and management of human resources,

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particularly in relation to people's career experiences, employability, development opportunities

and career success (Cappellen and Janssens, 2008; Petersen et al., 2000; Boxman et al., 1991;

Ibarra and Deshpamde, 2008; Nabi, 1999; Seidel et al., 2000; Forret and Dougherty, 2004).

Social capital refers to the resources that are generated through relationships with other social

actors in a given context. Social capital is often identified in the literature as a positive form of

capital that facilitates the generation of new knowledge, the flow of knowledge between actors,

and the diffusion and uptake of innovations (Sanchez-Famoso et al., 2014, Dess and Sauerwald,

2014). Many organizations will create support structures to help their employees develop social

capital internally and externally because of the knowledge creation, diffusion and learning

benefits it creates (Tregaskis et al., 2010).

However, social capital can also be generated through institutional norms or conventions that

govern relations and responsibilities between social actors and define the boundaries between

members and non-members. For instance, social capital exists as Guanxi in China (Chen and

Chen, 2004), Jeitinho in Brazil, Svyazi in Russia, and Pulling Strings in the United Kingdom

(Smith et al., 2011), Tropil in Turkey (Özbay, 2008), Nepotism in Latin American and Africa

(Wated and Sanchez, 2014, Bekker, 1991), Family Tree in Zambia, and Wasta in the Arabic

world (Cunningham and Sarayrah, 1993). The one element common to all these mechanisms for

developing social capital is how they are perceived to be biased by offering unfair advantages to

those who are members. Thus, in the business world such mechanisms for social capital

development are not seen as progressive and commensurate with ‘good practice’. Despite these

negative connotations, these practices have endured. In Jordan, the institutionally embedded

mechanism for developing social capital is Wasta, which is the phenomenon of interest here.

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Wasta: Meaning and Characteristics

Wasta can be seen as “the intervention of a patron in favour of a client to obtain benefits and/or

resources from a third party” (Mohammad and Hamdy, 2008, p.1). This definition indicates the

parties involved including: the Wasta person (intercessor) who does the Wasta (verb) and the

Wastee (supplicant) who receives benefits (called objects), sometimes from a third party. These

three elements form the key components of Wasta (Cunningham and Sarayrah, 1993).

There are two facets of Wasta: mediation and intercession (Cunningham and Sarayrah, 1993).

The former refers to mediating activities between disputing parties to resolve a conflict between

them, or to facilitate a social rapprochement such as in the case of marriage. Mediating Wasta

aims to promote cooperation and security among society members; thus, it receives more societal

approbation encouragement and less criticism. The latter involves bypassing the law and

obtaining favours and benefits at the expense of other people; therefore, it is widely opposed by

Arabic people.

Wasta consists of multifunctional “social networks of interpersonal connections… implicating

the exercise of power, influence, and information sharing through social and politico-business

networks. It is intrinsic to the operation of many valuable social processes, central to the

transmission of knowledge and the creation of opportunity” (Hutchings and Weir, 2006, p.143).

This means that the scope of Wasta is not confined to support and favouritism provided to family

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members, such as nepotism. Wasta involves several other relationships such as cronyism,

kinship, colleagueship, friendships, and business relationships.

Wasta is also perceived as an unwritten social contract comprising cooperation and obligation

among certain social groups’ memberships including families. However, it does not always

imply direct reciprocity in the relationship. Sometimes the intercessors or those providing

benefits to the supplicant do not expect to receive support in return or from the same

beneficiaries directly. However, people sometimes expand their networks and offer their help

and support in order to receive reciprocal benefits in the future (Adler and Kwon, 2002).

Therefore, Wasta is deemed a “hidden force” (Cunningham and Sarayrah, 1993) or “invisible

hand” that is not always apparent during the benefits exchange process (Barnett et al., 2011). In

this way, Wasta sets out the governance rules or expectations of the participants.

Prevalence of Wasta

Wasta is prevalent and historically is integrated deeply into the social fabric of Arabic societies

(Barnett et al., 2011). It is part of day-to-day Arabic language and activities, and represents “a

way of life” (Tlaiss and Kauser, 2011b, p.479). For example, Ezzedeen and Swiercz (2001)

found that 65 % of the Lebanon Mobile Company’s employees obtained their jobs through

Wasta. The Arab Archives Institute (2000) found that more than 90% of respondents expected to

use it, 75% had used it to facilitate procedures. Faisal (1990) found that 79.4% of respondents

from a Saudi university indicated that both older and younger people use Wasta. Tlaiss and

Kauser (2011b) conducted their research in five Arabic countries (Lebanon, Syria, Kuwait,

United Arab Emirates and Saudi Arabia) and studied the opinions of managers from different

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managerial levels. They found that 89 % of respondents had used Wasta, 80 % use it regularly,

and 86% believe that Wasta improves all sorts of interactions.

Why does Wasta prevail despite attempts to eradicate it?

It is clear from the evidence base that Wasta prevails despite the unease associated with such

forms of social capital. Therefore we turn our attention to a consideration of some of the factors

that may explain its endurance. In doing so our explanation is anchored within the institutionalist

frame of reference which helps explain the embedding of mechanisms, such as Wasta, within the

fabric of social relations. This sections therefore is divided into four parts including: Rules and

Regulations, Professionalism and Educations, Economic Challenges, and Cultural factors.

Rule and Regulation

Wasta is a punishable crime by the Jordanian Anti-Corruption Commission. In law No. 62 for

the year 2006, Article 5, point (f) states that “Acceptance of nepotism and favouritism, which

nullifies a right or validates what is void.” However, such regulations and rules are not effective

in eliminating Wasta from the society for several reasons.

First, Jordan’s administrative and governmental system lacks transparency and accountability on

all levels (Loewe et al., 2008).The absence of trust between people and the government

encourages people to turn to informal institutions to attain what they believe to be their right or

to access resources from the labour market (Rothstein, 2004). People in Jordan therefore tend to

rely on Wasta which is an informal institution (El-Said and Harrigan, 2009) to achieve outcomes

swiftly and with less effort (Faisal, 1990)

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Second, Wasta stems from the state’s desire to maintain influence and grip on authority to

govern (Mohammad and Hamdy, 2008). Examining the development of Wasta in Jordan helps

explain the significance of this point. Historically, Wasta was employed to ensure security in

societies. It was used, particularly in its mediation function, by the sheikhs to resolve conflict

between tribes or tribe members (Ronsin, 2010) to prevent people taking revenge should disputes

be unresolved (Cunningham and Sarayrah, 1994). Later, Wasta witnessed a transition with the

establishment of Jordan at the beginning of the twentieth century. In 1921, the emerging central

Jordanian government used tribal sheikhs to act as intermediaries between their tribesmen and

the administrative institutions to impose and promote the state law to gain legitimacy for the new

institutional structures of political and economic governance. Meanwhile, sheikhs intervened on

behalf of their tribesmen in the government to create jobs and collect economic benefits (Ronsin,

2010). As a result, more key positions were filled by the close confidants of the political regime

regardless of their competences (Mohammad and Hamdy, 2008). Such practices are believed to

still play a key role in Jordan’s public administration. Wasta also has become a more

institutionalized practice in Jordan, for instance, it is a common practice for sons of security

officers to be given preference in the admission to universities and given scholarships to cover

fees and living expenses through being on the Honoured Military list or “Makromah Eskareha”.

On graduation they are given preference in filling vacancies in the military institutions. This

process maintains homogeneity and stasis within the administration system across several

generations.

The third reason that explains the difficulties in using regulation to change Wasta behaviour

concerns the people who draw up the laws and monitor compliance. These responsibilities lie

with members of parliament, who themselves are under pressure to exercise Wasta to increase

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their status and influence. MPs in Jordan are to some degree expected by the Jordanian people to

undertake Wasta to help them find jobs, achieve transfers to other workplaces, gain promotions

or obtain medical exemptions. Therefore, MPs are under continuous pressure from people in

their electoral strongholds to provide them with various benefits, including benefits in the

workplace. This means that the MPs, instead of working to draw up strong regulations to fight

Wasta and monitor the government’s application of rules, may through their actions promote

Wasta. Further, it might be argued that they are under government pressure to allow Wasta to

continue in order for the government to meet its Wasta obligations to its supporters.

Wasta is also used by the Jordanian central government as a mechanism to resolve numerous

societal problems. For instance, after the results of the 2013 election were published, riots and

tribal clashes erupted in several districts in Jordan. People who were dissatisfied with the results

publicly protested, causing some injuries and damage to property; therefore, the district

governors used tribal mechanisms to resolve the disputes. Such activities add significant value

to, and strengthens, Wasta in Jordan.

Fourth, Wasta prevails in the private sector due the sheer volume of family run businesses in

Jordan. For example the insurance sector is mainly governed by a few highly influential

companies and families. Given that the monitoring of the governance in these family run

companies is weak it is therefore not surprising to see Wasta still operating in Jordan. The strong

bonds among the Jordanian people can weaken the authorities’ effort to fight Wasta.

Fifth, the lack of employee protection afforded by the labour law in Jordan is believed to have an

impact on Wasta. It represents another challenge in the Jordanian labour market. This law suffers

from many deficiencies, such as in the articles related to unfair dismissal and ending employees’

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contracts. For instance, during 2009/10 many employers took advantage of labour law gaps and

used articles, particularly 25, 26, 28, and 31, to terminate thousands of employees’ contracts.

These articles allow organizations that restructure themselves to terminate unspecified numbers

of employees’ contracts simply by informing the Labour Ministry (Phenix Center, 2011). The

violations of employees’ rights also take the form of low compensation received as a result of

unfair dismissal. At best, they receive only half a month’s salary for each year of service. The

gap in the social protection of workers is also exacerbated by the small number of trade union

representatives and the weak role played by the existing ones in protecting their members’ rights

(Phenix Center, 2011). So people tend to use Wasta because it offers some protection from

redundancy whereas less well connected employees have weaker job security.

Finally, the large number of migrant workers in Jordan and competition for jobs may also

explain, in part, the persistence of Wasta. Around 17% of the workforce are migrant workers.

The majority from Egypt, Palestine, Syria and East Asia. A huge number of those migrant

workers are working without work permits, while others are working in sectors other than those

for which they obtained permission to work, particularly the agricultural sector (Phenix Center,

2011). This situation increases competition for jobs and therefore the Jordanian people try to use

Wasta to improve their chances.

Education in Jordan

The educational system has also affected the Wasta footprint primarily because of its disconnect

from the needs of businesses and an expanding economy. Thus, Wasta has played an important

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role in transitioning people from the educational system into employment. The educational

system in Jordan is advanced compared with its counterparts elsewhere in the Middle East.

The formal education system in Jordan is organized into three levels: a compulsory level for

children aged 6 to 15 consisting of primary schools, preparatory schools, a comprehensive

secondary education (academic and vocational) and applied secondary education; and higher

education consisting of either two-year intermediate-level courses offered by community

colleges or courses of four years or more provided by public and private universities.

Acceptance at the universities and colleges, particularly the state-owned ones, is determined

mainly by the results of the General Secondary Education Certificate Examination (Al-Tawjihi).

The educational system in Jordan has undergone dramatic changes since 1921 when there were

only four primary schools. Today, Jordanian society is commonly described as a students’

society (Branine and Analoui, 2006) with over 1.5 million young people involved in schooling.

There are also 372,120 undergraduate students and 14,390 postgraduate students studying in

about 30 Jordanian universities and 11,173 students studying abroad. In addition, there are more

than 14,344 students taking intermediate diplomas in 54 community colleges. Given that the

population of Jordan is just over 6 million these figures demonstrate a serious commitment to

education (Department of Statistics, 2012). The advanced nature of the Jordanian educational

system also makes it attractive to 28,000 foreign students (Alghad, 2013).

In 1961 the illiteracy rate was 67.6% in 2012 it was 6.7% (Statistics, 2012). This figure shows

the huge advancement and spread of education in Jordan. Jordan showed progress in the Human

Development Index (HDI) from .715 to .752 on a scale of 0-1 between 1997 and 2005 (European

Neighbourhood and Partnership Instrument: Jordan). This is linked to how Jordan is one of the

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better-performing countries in the Middle East region in terms of life expectancy at birth (72

years old), adult literacy (91%), and access to basic services and education (enrolment has

reached, respectively, 91%, 80%, and 31% at primary, secondary and tertiary levels).

The great attention paid to education in Jordan is largely a result of the lack of natural resources.

The government has invested significantly to develop the human resources in Jordan. However,

the educational system in Jordan suffers from a lack of coordination between its outputs and the

needs of the labour market (European Neighbourhood and Partnership Instrument: Jordan).

Therefore, the Jordanian people try to diminish this weakness through using Wasta to

compensate for the lack of professionally originated skills or experience. This therefore increases

the usage of Wasta in the Jordanian labour market and indeed strengthens its existence.

Economic Challenges

One of the key factors driving the use of Wasta in Jordan has been the harsh economic

conditions. Indeed people tend to used Wasta to meet their need, though they understand its

negative impact on their society and organizations.

Jordan suffers from a lack of natural resources such as energy resources (e.g. oil, coal), water

resources (in which it is one of the five poorest countries in the world), and fertile land (only 10

per cent of its land is arable). Jordan’s economy depends mainly on phosphates, potash, and

natural gas, which meets only 10 per cent of the country’s energy needs. The service-producing

sector in Jordan accounted for 65.8 per cent of GDP compared with 34.2 per cent provided by

the commodity-producing sectors in 2009.

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The performance of the Jordanian economy is still affected by the repercussions of the unstable

regional and global circumstances and challenges. According to figures released by the Central

bank of Jordan (2012), the economic and political pressures on Jordan have been escalating since

the Arab Spring erupted in 2011. The fiscal deficit increased significantly to 8.2 per cent of GDP

in 2012 from 6.8 per cent in 2011. In addition, the current account deficit increased to 18.1 per

cent of GDP, from 12.0 per cent in 2011. Furthermore, the foreign currency reserves in the

Central Bank of Jordan slumped by 37.0 per cent at the end of 2012 and the outstanding balance

of extended credit facilities increased by 12.5 per cent compared with the preceding year, with

the private sector representing 50 per cent of the expansion.

The high levels of unemployment (see Table 1) force job seekers to use Wasta in the competition

of getting jobs (Mohammad and Hamdy, 2008). It is argued that Wasta is used in job competition

because people see no other way to meet their objectives (Loewe et al., 2008).

Table (1): Unemployment Rate

Unemployment rate Total Female Male

2009 12.9 24.1 10.3

2010 12.5 21.7 10.4

2011 12.9 21.2 11.0

2012 12.2 19.9 10.4

Source: (Department of Statistics, 2012)

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Furthermore, Jordan has a high number of refugees which creates challenges. The high number

of refugees is caused mainly by wars and conflicts. The majority of refugees are Palestinians

(1,952,000), Syrians (1,300,000), Iraqis (500,000), and Circassians (80,000), in addition to those

from other nations such as Armenians and Chechens. This places huge pressure on the country’s

infrastructure as well as on the limited natural resources. These refugees are also competing

significantly with the Jordanian workforce in the labour market. This means that Jordanian

employees have tended to turn to Wasta more to find good jobs in this highly competitive

Jordanian labour market.

The global financial crisis has also impacted on Jordan. The Jordanian market is strongly

integrated into global markets. Companies in Jordan, particularly those in the financial sector, are

dealing with many challenges that affect their operations and thus their survival. This can mean

that in some instance firms may undertake Wasta involving supporting job opportunities for

family members of clients in order to retain a lucrative contract with a customer (Ta'Amnha,

2014). Thus, Wasta has important trade-offs which can make the difference to the survival of a firm and

job security of that firm’s workforce in tough economic markets.

Cultural Factors

Cultural aspects are key sources of influence in Arabic societies. In particular, the strong family

relationships have a key impact on the economic, political and social life in these societies (Ali,

1992, Hutchings and Weir, 2006, Rice, 1999).

Wasta is a social-construct that is a key dimension in the Jordanian culture by which the tribal

values of solidarity, loyalty and cooperation are achieved. Wasta is promoted and sustained in

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Jordanian society through several embedded informal mechanisms. For instance, any person who

occupies an influential position is expected to exercise Wasta to their relatives. People do Wasta

to meet their obligations to their tribes and families so they can show their loyalty and solidarity

(Loewe et al., 2008). Otherwise, people who refuse to exercise Wasta for their relatives will

become outcasts and lose support, protection and status provided by their groups (Ronsin, 2010,

Cunningham and Sarayrah, 1994). Wasta therefore has the ability of survive in society by

shaming and shunning those who refuse to exercise Wasta for their relatives. Indeed, the Arab

Archives Institute (2000) found that around 60% of Jordanian respondents said that they are

subjected to social pressure to exercise Wasta.

Wasta is also deep-seated in the Jordanian society because it enhances people’s social status and

success. Whiteoak et al. (2006) introduced the concept of “utility of Wasta” which explains that

people’s successes are sometimes evaluated based on their connections with other influential

people. Undeniably, Wasta is a source of pride, prestige and influence for both the intercessors

and those who provide the support and for the supplicants who have influential Wasta

connections. This clearly explains the motivation for various parties to be involved in Wasta and

its promotion.

Challenges to Wasta

Undoubtedly, Wasta is widespread in Arabic societies, a characteristic of the lack of democracy

in the region (Touzani et al., 2015). It is perceived by others as inequitable, a form of corruption

that implies breaching the laws and regulations enacted to ensure justice and equal opportunities

among the societies’ members. Obviously, the influence of Wasta in decision-making processes

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in the workplace results in available resources and benefits being given to some people at the

expense of others who may be more qualified or experienced.

Certainly, the intervention of Wasta in hiring decisions sometimes results in unqualified

employees gaining roles who are then unable to meet their job responsibilities due to a lack of

knowledge or skill. Re-qualifying these employees and solving the problems they often create

requires considerable resources detrimentally affecting the productivity and competitiveness of

their organizations detrimentally (Warren et al., 2004).

The detrimental effects of Wasta are seen not only in the lack of “know how” competence in the

professional profiles of Wasta employees (supplicants). Unprofessional behaviour, e.g. absence

and habitual tardiness can have destructive consequences for the organization’s performance, and

its existence (Samuel and Justina, 2006, Chirasha and Mahapa, 2012). The use of Wasta also

impacts on the perception of justice in organizations, affecting the satisfaction, commitment and

citizenship behaviours of unsupported employees or those who refuse to use Wasta in their jobs.

Wasta affects the job satisfaction and motivation of employees negatively and leads to a

reduction in their work involvement and organizational commitment, low morale and high levels

of stress and frustration, according to an analysis of 511 Human Resources managers’ responses

from Jordan and Egypt (Hayajenh et al., 1994). Wasta can render these organizations more

vulnerable to the risk of resentment and retaliation from dissatisfied employees who may feel

discriminated against or marginalised (Skarlicki and Folger, 1997). Wasta has a destructive

impact on the companies’ abilities to increase their “know how” competence or intellectual

capital, which are needed to maintain competitive advantage (Edvinsson et al., 1997). This

happens when key employees find themselves unable to hone their practical skills by performing

tasks associated with human resource management or undertake their managerial responsibilities

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through practice and learning from experience (Davies and Easterby‐Smith, 1984, Kolb et al.,

2001). In addition, many of the principles of equity and fair treatment underpinning effective

human resource management can be compromised by the use of nepotism (Arasli et al. (2006).

Tlaiss and Kauser (2011b) indicated that Wasta destroys equality in the workplace. They found

that 83% of the participants in their study perceived Wasta as unfair practices because it leads to

unqualified people being assigned to significant positions, resulting in poor performance in the

organization.

The opportunity to leverage the level of knowledge in the organization is also lost when

employees hesitate to invest their resources by enrolling in university or training institutions

because they consider their status will be unchanged as they do not have powerful Wasta (Tlaiss

and Kauser, 2011b). Certainly, organizations where favouritism is practised are undesirable

places in which to work, particularly for ambitious professional managers (Rhoades and

Eisenberger, 2002, Arasli et al., 2006). Metcalfe (2006), after analysing research from Jordan,

Bahrain and Oman, found that employees who are not connected with intercessors do not receive

certain work-related benefits such as job appointments or training opportunities because such

resources are allocated according to personal relationships and family networks rather than

individuals’ qualifications and merits. As a result, talented and qualified people were not given

the chance to improve their careers and enhance their life conditions (Metcalfe, 2006). In the

longer term the use of Wasta can discourage a generation of well-educated employees to stay in

Jordan, opting instead to take their human capital elsewhere to pursue opportunities in the global

workplace.

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Research suggests, that the use of Wasta also reflects poorly on those who benefit. For instance,

Mohammad and Hamdy (2008) found that those employees who used Wasta were rated lower in

terms of their perceived competence than those who did not use it; furthermore, in terms of

perceived morality, their study revealed that job incumbents who used Wasta were rated lower

with regard to morality than those who did not use it.

Wasta affects human resources management practices because it impacts on employee’s careers

in Arab organizations. Hutchings and Weir (2006) explained that hiring and selecting decisions

are subjective processes that are influenced largely by personal contacts, nepotism, regionalism,

and family name. Managers usually do Wasta to fulfil their duties to these groups, and their

exercising of Wasta is not usually based on the beneficiaries’ qualifications and abilities to meet

organizational goals and objectives. Similarly, Altarawneh (2009) argues that managers’

relatives and friends in the Jordanian banking sector receive extra benefits through participating

in the organizations’ training and development programs. Tlaiss and Kauser (2011a) found

similar results when analysing qualitative data with thirty-two managers who work in service and

manufacturing industries. They found that the respondents believe that Wasta influences

decisions on recruitment, promotion and career advancement opportunities.

Pressure for Change: The future of Wasta

Social Pressures

Social pressure stems mainly from Islamic values and ethical codes that are highly dignified in

Jordanian society, significantly affecting its members’ attitudes and activities (Hashim, 2010).

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One of these principles is justice (Rice, 1999), and therefore any practices or activities that

deprives some people of equal access to society’s welfare are strongly condemned (Al Jallad,

2008).

The Islamic teachings encourage people to treat each other and allocate the societies’ resources

according to the principles of fairness and worthiness. Islam urges the decision makers to select

honest people who are able to perform their jobs’ responsibilities well. For instance, the Holy

Qura’an, the major source of the Islam teachings, stated that “The best you can hire is the strong

and the trustworthy”. 28:26. Also, the behaviors and practices of Omar Bin Alkhatab, the

companion of Prophet Mohammad and Muslim Khalifa (successor) are considered a source of

legalization and preferable examples and guidelines in administration. For instance, he rebuffed

requests for hires in exchange for personal gain and influence and opposed hiring relatives, he

said “the one betray the God and his messenger if he hires a man based on their intimacy or

kinship” Accordingly, the religious community consider the intercessor who exercises Wasta for

others as a devious and dishonest person (Cunningham and Sarayrah, 1993).

Therefore the religious view discourages Wasta in society. But this is in contrast to the tribal

mind-set. Indeed, there is a degree of contradiction and tension between Islamic values and the

tribal values, though both of them try to promote similar values. For example, the Islamic values

aim to promote cooperation and solidarity amongst all of society members whereas at the tribal

level there is a focus on promotion of values amongst the tribe members. Thus Wasta is

condemned by Islam whereas it is highly encouraged in a tribal setting.

Pressure on Wasta also stems from Face norms in Jordan. The Face norm seems to have a strong

effect on people’s behaviours. Engaging in certain activities that are encouraged by members of

society produces a positive image or white face. Wasta, for instance, was found to be a positive

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mechanism encouraging Wasta employees to do their jobs satisfactorily in order to give their

intercessors a positive image or white face for those who provide benefits to the Wasta

employees based on the intercessors’ recommendations. However, this informal mechanism also

works in an adverse way. People are now increasingly avoiding any potential embarrassment that

might be caused by taking an interest in the actions of their recommended employees as negative

feedback could affect their social standing. So face norms are resulting in intercessors continuing

to monitor the performance of the Wasta employees in order to encourage them to perform

properly and resolve any problems that may occur (Cunningham and Sarayrah, 1993).

Politics and Arab Spring

The heated political conditions currently present in Jordan are having a considerable impact on

many issues and practices in Jordanian society and its organizations. The continuing call for

economic, political, and social reforms by the Jordanian people places many pressures on Wasta

and the people who exercise it. The momentum of these pressures has increased dramatically

since the Arab Spring uprisings challenged long-standing custom and practice in the Arabic

world.

Wasta is seen by the Arabic people as a major cause of poverty and backwardness in their

society and they are therefore eager to eliminate it. For instance, Hassan (2013, p.69) explained

that Wasta was one of the main factors that ignited the revolution in Tunisia since the “market

liberalization was very much tied to cronyism” and the privatization of state-owned businesses

was confined to “a context in which special connections (Wasta) prevailed rather than a

Weberian “rational” bureaucracy.” In addition, Kilcullen and Rosenblatt (2014) explained that

21

the revolution in Syria was started by people who do not have links to the regime and no Wasta

to get jobs or bribe money to buy them. Similarly, in Morocco, Wasta causes tensions,

particularly for unemployed graduates who do not have Wasta to go to higher-rated education

institutions and graduate automatically to jobs that are allocated or created for the elite. This

situation leaves the deprived jobseekers dissatisfied they belong to an inferior social category

(Badimon, 2013). Jamali et al. (2013, p.159) outline how Wasta reduces the effectiveness of

societies’ economies, thus negatively affecting people’s living standards and security leading to

political tension and unrest. How Wasta “permits the avoidance of costs or taxes, thereby

reducing state revenues; the acquisition of positions of power without having the required

experience and skills, thereby weakening institutions; or the acquisition of monopolies over rent-

generating assets.”

Noticeably, the Arab Spring has affected the spread and usage of Wasta adversely. For instance,

in Tunisia Touzani et al. (2015) found that even though Wasta is a key obstacle for the Tunisian

entrepreneurs, post-revolution it has become more feasible for Wasta outsiders to gain prestige

and initiate entrepreneurial activities.

In Jordan, because of continuing demands for reform, the government has focused increasingly

on the role of the Anti-Corruption Commission, which is responsible for monitoring the

performance of government institutions and to some extent the private sector. A major role for

this institution is the investigation of any Wasta activities. Many Jordanian people find that

Wasta plays a negative role in the development and advancement of the county, with negative

consequences for their standards of living. This has been the result of favouritism and dominance

of subjective criteria in hiring and promotion decisions, which has meant that performance

levels have become less important requirements, in turn affecting organisational efficiency and

22

effectiveness. Thus, as the quality of the services provided to the citizens has deteriorated, so

their voices have become louder.

Globalization

The other factor driving change on Wasta comes from the external pressures on Jordan.

Certainly, the Jordanian workplace has witnessed many changes arising from the country’s

desire for modernization and in response to globalizations pressures. In fact, the Jordanian

market has become more liberal and open. For instance, Jordan is the 136th member of the

World Trade Organization (World trade organization, 2000), in 2000 signed a free trade

agreement with the United States. It participated in the European Free Trade Association in

2001, and promotes free economic, industrial zones and privatization (Al-Shammari and

Hussein, 2008). During this period (1999 and 2010) foreign direct investment increased 600 per

cent.

These indicators and events have stimulated deregulation of national economies and integration

into a single market (Lane and Maeland, 2010). They are also increasing the competition for

recruiting, developing talented human resource, and adoption of western management

approaches (Fagenson, 1994), mainly Anglo-Saxon approaches (Sultana and Watts, 2008). The

international companies that enter tend to work under high level governance from Headquarters

that places pressure on Wasta. Typically, these companies rely on objective criteria when it

comes to making decisions pertaining to human resource management. These companies are

perceived as very successful in the Jordanian market and therefore the Jordanian companies tend

to imitate these companies’ practices in order to be perceived as legitimate to high potential

candidate, giving them access to global labour markets and business markets. Certainly, the

institutional isomorphic mechanisms effectively lead to substantial changes in societies and their

23

organizations. For instance, Abu-Doleh (2000) indicated that the focus on modern human

resource management has increased recently in some Jordanian companies because it has

significantly improved their productivity and enhanced their position in the market. Therefore,

Jordanian organizations are realizing that the intervention of Wasta in their businesses can affect

negatively their competitiveness and as a result they begin to show signs of rejection of Wasta in

their organization.

Islamic Business Ethics

Attention to Islamic Work Ethics (IWEs) has increased recently in the social science literature

and is potentially an important driver in changing the use of Wasta practice. The importance of

these ethics stems from their key influence on the sense-making processes of Muslims, shaping

their beliefs and logics and thus determining their taken-for-grantedness.

Islamic ethics are easier to define given that there is otherwise a big debate on what is ethical and

unethical. Muslims are more likely to accept ethics and values if they are rooted in Islam

compared with their high sensitivity to other cultures’ values such as the Western protestant

work ethics (PWEs), although they are similar in promoting “hard work, commitment and

dedication to work, work creativity, avoidance of unethical methods of wealth accumulation,

cooperation and competitiveness at the work place” (Yousef, 2001, p.154).

However, the Islamic Work Ethics (IWEs) are different from the PWE in that the former place

considerable emphasis on the intention rather than the results or profit, and they also give great

24

consideration to the welfare of society and its organizations, such as justice and generosity in the

workplace and duties to society, believing that participation in economic activities is an

obligation (Yousef, 2001). Furthermore, IWEs consider both the spiritual and material aspects of

people’s lives distinguish Islamic management from other approaches (Sabri, 2011)

Islamic ethics are derived mainly from two sources: the Qur’an-the holy book believed to have

been sent to Prophet Mohammad by God; and the Sunnah-the written guidelines of Prophet

Mohammad’s sayings and practices. These ethics promote moral codes to organize and manage

people’s personal and professional lives. Rice (1999, p.346) indicated that “Islam is generally

misunderstood and it is often surprising to some that it contains an entire socio-economic

system”.

Indeed, Islam is a comprehensive system involving guidelines and rules for “a complete way of

life” (Sabri, 2011, p.217). This system influences families’ normal lived lives and their

relationships to others; the guidelines explain the mission of individuals and groups within

society and dictate the conduct required in economic activities, and educational, economic and

judicial systems (ibid). For instance, the system intervenes in business and government activities,

individuals’ enterprises, and rewards, wages and relationships with employees (Iles et al., 2012).

Another example is the expansion in Islamic insurance and banking businesses such as Takaful

NasionalSdnBhd and Syarikkat Takaful Malaysia Bhd in Malaysia, Syarkat Takaful Singapura

(Agencies) Pte Ltd. in Singapore, and Qatar Islamic Insurance Company in Qatar. It can also be

seen in the way that Islam influences the businesses of some of the more conventional financial

institutions such as Citibank, ANZ Bank and UBS Warburg, which have established Islamic

banking systems to meet Islamic customers’ needs (Ahmad and Petrick, 2003).

25

Islamic ethics have proved to be a positive influence in the workplace. For instance, Yousef

(2001) surveyed 425 Muslim employees working for various organizations in the United Arab

Emirates (UAE) and found that the IWEs affects both organizational commitment and job

satisfaction and moderates the relationship between them. Similarly, Yousef (2000) analysed the

responses of 474 employees from 30 organizations in the UAE and found that IWEs positively

affected attitudes to organizational changes and organizational commitment. Ali and A. Al-

Kazemi (2007) found that IWEs lead to increased loyalty of Kuwaiti managers to their

companies, and they thus work hard to improve the performance and the positions of their

companies compared to competitors. Mousavi et al. (2013), analysing 133 questionnaires

completed by employees working in 10 Iranian manufacturing companies discovered that IWEs

have a significant positive influence on employees’ job satisfaction. Sadozai et al. (2013),

analysing the responses of 460 full-time federal and provincial government employees, found

that IWEs were positively related to organizational commitment, thus leading to a decrease in the

turnover rate. Rokhman (2010), studying the responses of 49 employees from 10 Islamic

microfinance institutions in Indonesia, found that IWEs positively affect both job satisfaction

and organizational commitment. Kumar and Rose, (2010), studying 472 responses from

employees in the Malaysian public sector, found that IWEs were pervasive in this sector and

positively connected with innovation capabilities.

Rice (1999) explained four interrelated guidelines that stem from Islamic ethics, developing a

framework that could be used to promote acceptable practices in Islamic societies and their

organizations: (1) Unity: this principle has two faces: the first one reflects the belief that God is

26

the only creator of the universe, while the other proposes that all Muslims are equal and are

brothers and sisters; thus they have to cooperate and promote equal opportunities between them.

Certainly, the ontology of humanity in the Qur’an’s approach implies that all human beings are

umma wahida (one community), come from a single origin, and have a common purpose

(Hashmi, 1993); (2) Justice: this principle explains that one of the main messages of Islam is the

need to eliminate all forms of inequity, injustice, exploitation and oppression from society. For

instance, employment under the umbrella of Islam is governed by the Islamic laws of fairness

and justice, with rewards matching performance (Possumah et al., 2013). The Qur’an mentioned

that rewards and punishments should be based on the individual’s merit or guilt and not on

favouritism: “. . . no bearer of burdens can bear the burdens of another; . . . man can have

nothing but what he strives for . . .” (Qur’an 53:38–9). The Islamic teachings encourage people

to treat each other and allocate society’s resources according to the principles of fairness and

worthiness; (3) Trusteeship: this principle implies that people are the trustees of the earth on

behalf of God. This means that all people are encouraged to exploit the available opportunities to

improve their living conditions. It is presumed that everyone has the right to access the available

resources and benefit equally without depriving other people of what they deserve or have

worked for. This principle also supposes that the available resources should be used properly and

efficiently; (4) The Need for Balance: this principle implies that Muslims are encouraged to be

moderate in all aspects of their lives, as Prophet Mohammad described Islam as a “middle way”,

meaning that achieving social wellbeing and continued advancement in life requires a balance.

IWEs, for instance, refer to attitudes to work, assuming that work is the most effective way of

establishing a balance in one’s personal, social and professional lives (Ali, 1992).

27

These ethics can be promoted when the different institutions in society share this responsibility,

such as the Ministries of Education, Schools and Universities, religious institutions, and

legislators (AL-Shaikh, 2003). Other international or regional institutions can also take part.

Rokhman (2010) suggested that organizations’ managers can work to ensure that employees

understand IWEs by taking part in training and educational programs that focus on applying

Islamic morals and values in the workplace.

Conclusions

Overall, this chapter aimed to provide an understanding of the significance and use of Wasta in

the workplace. But then to move beyond this by considering the societal factors that have

embedded Wasta and the societal changes that may eventually influence its evolution.

Certainly, Wasta is a big dilemma in Jordan. On the one hand, Wasta is widely practiced in

Jordanian society and its institutions due to many reasons including weaknesses in the rules and

regulations, disconnect between the educational system and the needs of businesses and a growing

economy, harsh economic conditions, strong cultural tribal values of solidarity, loyalty, and cooperation.

On the other hand, however, Wasta faces several challenges resulting from the negative effects of Wasta

on Arabic societies and their organizations. As a result, Wasta is under incremental pressures comprising

social, politics and Arab Spring, globalization, and application of Islamic Work Ethics.

This situation therefore indicates the presence of a significant tension occurring within the institution of

Wasta. Some factors sustain and spread Wasta and some other factors operate in an adverse way. Wasta

provides an example of an institutionalizing and/or deinstitutionalizing processes in action, and how it

will evolve remains to be seen. Wasta therefore provides fertile ground for research from several

28

perspectives given that it intervenes in the economic, political, social, and recently security issues in

Arabic societies.

This work calls for paying more attention to the Islamic Work Ethics (IWEs) such as unity, justice,

trusteeship, cooperation, solidarity, and balance; and understanding how IWEs may play out in the

workplace. Bases on the evidence, we might suggest that as IWEs rise in the workplace the role of Wasta

may decline, as the former acts to replace or substitute for the latter.

However, the evidence currently suggests that Wasta is widely-used in Jordan (Arab Archives

Institute, 2000, El-Said and Harrigan, 2009) even though it is perceived to be corrupt and

against the notion of justice and equal opportunities in society. It is not compatible with

principles of corporate governance and professionalism, and therefore there is a continuous

demand by the Jordanian people for its eradication from Jordanian society and its organizations.

However, by considering the historical context of Wasta we hope to have demonstrated that

regulation alone is unlikely to create change. Globalisation has opened the economic market

place in Jordan and the expansion of foreign direct investment and tight competition for talent, is

forcing firms to look at how social capital is created and utilised in the workplace.

Reacting to the negative effects of Wasta, organizations can create healthy working

environments that give stronger consideration to the qualifications, education and experience of

their employees than to any other factors in making career-related decisions. This can lead to

increased levels of employee satisfaction and motivation towards their work. Thus, employees

become more willing to invest their resources to develop their human capital while enriching

their knowledge and skills. This situation would improve the organization’s performance.

Indeed, employees may consider the importance of investing in their human capital when they

find that their organizations are applying fair systems that reward them according to the

29

contributions they make to their organizations, rather than according to personal relationships

such as Wasta. Human resource departments can play a major role in establishing such an

organizational system that reduces the usage of traditional Wasta. They can draw clearer

objective criteria that improve the assessment processes in career-related decisions such as

recruiting, selecting, promoting, and offering developmental opportunities.

The evidence suggests that many employees resort to Wasta because they feel it is the only

option available to them. Therefore, there is scope for organizations to do more to provide access

to opportunities for all. By introducing mentoring or transparent networking systems,

organizations could give all employees an equal chance to receive advice and training from

expert employees. The benefits gained from such exposure would enable employees to build

their networks within and beyond the organizations’ boundaries, thus reducing the need for

Wasta.

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